Guess: Stock Price as Sexy as Its Ads

After blowing away sales and earnings estimates, Guess climbs 12%. The jeans maker remains a turnaround story with potential.

The clothing designer known for its denim jeans—and racy ads—wowed Wall Street late Wednesday with fiscal second-quarter financial results that beat expectations by a mile and sent the share price soaring as much as 16% earlier Thursday.

For the quarter ended Aug. 3, Guess (ticker: GES) posted operating profit of 52 cents a share on revenue of $639 million, well above the 36 cents on $623...